Best Pharma Stocks in May 2025: Neuland Labs, Suven Pharma, Laurus Labs and More – Based on 5-Yr CAGR

India stands as the world’s leading supplier of generic medicines, well-known for producing cost-effective vaccines and pharmaceutical products. Ranking third globally in terms of production volume, the Indian pharmaceutical sector has achieved a compound annual growth rate (CAGR) of 9.43% over the past 9 years. It also boasts the highest number of USFDA-approved manufacturing facilities outside the US, underscoring its global quality standards.

The industry contributes significantly to global healthcare, supplying 50% of vaccines worldwide, 40% of generics used in the U.S., and 25% of those in the U.K. Domestically, the sector comprises approximately 3,000 pharmaceutical companies and 10,500 manufacturing units, making up about 1.72% of India’s GDP.

India is also the dominant global source of antiretroviral drugs used in AIDS treatment, fulfilling over 80% of global demand. These achievements have earned India the title of the “pharmacy of the world.” While it ranks third globally in terms of production volume, it is 14th by market value.

Looking ahead, the Indian pharmaceutical market is projected to reach $130 billion by 2030. Meanwhile, the global pharma industry surpassed USD 1 trillion in market size in 2023.

Now, let’s look at the top Indian pharmaceutical stocks for May 2025, evaluated based on their 5-year CAGR, 1-year return, and market capitalisation.

Top Pharma Stocks in India in May 2025 – 5yr CAGR Basis

Note: The list of top pharma stocks in India in May here is picked from the Nifty 500 universe and is sorted as per 5-year CAGR as of May 07, 2025. 

Read More, Best Drone Stocks in India in May 2025: Zen Tech, RattanIndia, HAL and More – 5Yr CAGR Basis.  

Overview of Best Pharma Stocks in India

1. Neuland Laboratories

Neuland Laboratories specialises in the production and sale of bulk drugs, serving both domestic and global markets.

In Q3FY25, Neuland Laboratories reported a slight 1.8% year-on-year rise in total income to ₹401.9 crore, and a strong 27.5% sequential growth. However, EBITDA dropped 26.4% YoY to ₹90.3 crore, though it improved 37.5% from the previous quarter. 

Key metrics: 

• Earning per share (EPS): ₹233.28
• Return on equity (ROE): 21.56%

2. Suven Pharmaceuticals Ltd

Based in Hyderabad, this CDMO (Contract Development and Manufacturing Organization) serves leading global pharmaceutical and fine chemical companies in their NCE (New Chemical Entity) development efforts. 

For the quarter ended December 2024, the company reported a revenue of ₹275.39 crore, up from ₹236.06 crore in September 2024. Its net profit for the December quarter stood at ₹86.35 crore, compared to ₹76.33 crore in the previous quarter. 

Key metrics: 

• EPS: ₹11.05
• ROE: 12.75%

3. Laurus Labs

Founded in 2005, Laurus Labs is a research-focused pharmaceutical and biotechnology firm that holds a prominent global position in manufacturing key Active Pharmaceutical Ingredients (APIs), particularly for anti-retroviral, oncology, cardiovascular, and gastroenterology therapies, including high-potency APIs.

In the quarter ending December 2024, Laurus Labs reported a revenue of ₹1,265.19 crore, up from ₹1,184.85 crore in September 2024, contributing to a total revenue of ₹4,812.39 crore for FY 2023–24. The net profit for December stood at ₹57.27 crore, rising from ₹42.44 crore in the previous quarter, with a cumulative net profit of ₹223.70 crore for the fiscal year.

Key metrics: 

• EPS: ₹4.63
• ROE: 5.85%

4. Caplin Point Laboratories Ltd

Caplin Point Laboratories Ltd specialises in the manufacturing and procurement of APIs and finished formulations. The company is also involved in R&D and clinical research, with a strong presence across Latin America, Africa, the USA, and several other countries.

Caplin Point Laboratories reported a revenue of ₹185.23 crore in December 2024, down from ₹207.93 crore in September 2024, while the revenue for FY 2023–24 stood at ₹625.09 crore. The net profit for December 2024 was ₹74.71 crore, compared to ₹105.74 crore in September 2024, with a total net profit of ₹283.71 crore for the fiscal year.

Key metrics: 

• EPS: ₹42.48
• ROE: 21.03%

5. Wockhardt Ltd

Wockhardt is an international pharmaceutical and biotechnology company involved in producing finished dosage forms, injectables, biopharmaceuticals, oral medications, and topical products such as creams and ointments.

Wockhardt reported a revenue of ₹325 crore in December 2024, down from ₹370 crore in September 2024, while the net loss narrowed to ₹22 crore from ₹36 crore in the previous quarter. For FY 2023-24, the company posted a total revenue of ₹1,154 crore and a net loss of ₹422 crore.

Key metrics: 

• EPS: -₹10.95
• ROE: -10.08%

Top Pharma Stocks in India in May 2025 – Market Cap Basis

Note: The list of top pharma stocks in India in May here is picked from the Nifty 500 universe and is sorted as per market cap as of May 07, 2025. 

Top Pharma Stocks in India in May 2025 – 1-yr Return Basis

Note: The list of top pharma stocks in India in May here is picked from the Nifty 500 universe and is sorted as per 1-year return as of May 07, 2025. 

Key Factors to Evaluate Before Investing in Indian Pharma Stocks

1. Healthcare Infrastructure

The development of healthcare infrastructure in India plays a crucial role in shaping the pharmaceutical sector. As hospitals, clinics, and other medical services expand, the demand for pharmaceutical products rises, offering growth prospects for pharma companies.

2. Rising Demand

Demand for medicines is driven by several factors, including an ageing population, increasing healthcare expenditure, and the emergence of lifestyle and infectious diseases. Understanding both current trends and future projections is important when assessing the growth potential of pharmaceutical stocks.

3. Industry Competition and Consolidation

India’s pharmaceutical industry is highly competitive, with firms frequently engaging in mergers and acquisitions to strengthen their position. Investors should examine a company’s market share, recent performance, and long-term growth strategy to make well-informed investment decisions.

4. Focus on Research and Development

Pharma companies invest significantly in R&D to discover and launch new drugs. Analysing a company’s investment in research and its pipeline of upcoming products can provide insight into its innovation potential and future revenue drivers.

Conclusion

The Indian pharmaceutical industry presents attractive investment opportunities due to its strong role in global trade. However, investors should be cautious of risks such as regulatory changes, especially those affecting pricing policies and exports. Heavy reliance on markets like the US also means that FDA inspections and policy shifts can impact performance. Additionally, as a large portion of revenues comes from exports, currency volatility may affect earnings. Thorough analysis of these factors is essential before investing in the pharma space.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.                                       

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